At least 1,53,500 establishments have again started contributing to the Employees Provident Fund Organisation (EPFO) after pausing payments, indicating a recovery after the coronavirus lockdown. However, around 64,000 entities are yet to restart contributions.
At least 5,49,037 firms were contributing to EPFO in February, the number dropped drastically to 3,32,773 in April, Mint reported, citing official data.
“The rebound of over 1.5 lakh companies by August indicates a revival,” a government official said. The return also means a growth in EPFO’s subscriber base, which had slumped to a low in April, the official added.
Moneycontrol could not independently verify the report.
It is mandatory for companies and establishments with 20 or more employees to contribute to EPFO. While 12 percent of employee’s basic salary is to be contributed to EPFO, the Centre had in May reduced statutory provident fund contribution rate to 10 percent. The reduced EPF contribution amount was for three months.
Starting August, the EPF contribution is back to the earlier contribution of 24 percent, which would be 12 percent each from the employee and the employer.
Source: Moneycontrol
